Yes, this is possible. A change of legal entity is when the entity that pays back the funding you have with YouLend is changed from one entity type to another - for example you were a Sole Trader and now you have a Limited Company to take over the funding. If you are going through this process it is imperative that you get in contact with us - please click here to see how. Please note, we are only able to support the following entity changes:
ST to LTD
LTD to ST
ST to Partnership
LTD to Partnership
Partnership to ST
Partnership to LTD
Any other request we are unable to support. In line with your agreement, we are only able to support a change of legal entity. Please see the below:
Neither the merchant nor the guarantor are allowed to assign, transfer or novate rights or obligations under the loan agreement to any person.
This can be found in clause 8.1 of the UK loan agreement or clause 9.1 of the UK receivables purchase agreement. If this is what is happening to your business we can still help you with the repayments, so please get in contact with us so we can help.
We would not want to disturb your businesses functioning, so YouLend will provide an alternative arrangement to ensure suitable repayment continuity. Please ensure you notify your payment processor of any changes also.